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Fixed costs are those you have to pay whether you produce 10 or 1000 items:

Depreciation of assembly line facilities at Ford
Recurring advertising costs by a physician's office
Insurance on factory assembly facility

The remaining items will vary depending on varying factors:

Shipping costs from an Amazon distribution center depend on sales volume
The cost of hardware installed on sailboats depends on how many boats are made
Wages paid to temporary personnel usually when times are busy
Commissions paid to Avon representatives depend on sales

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In the solution, the calculations are shown to answer the questions together with explanations.

$2.19

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$2.19

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